Has the rebound in US stocks ended? Cantor Fitzgerald sounds the alarm: multiple bearish factors are accumulating
Cantor Fitzgerald maintains a bearish stance on the U.S. stock market in its latest investor report, warning that the market rebound may have ended. It expects economic and corporate challenges in the next three to nine months, primarily due to inflationary pressures from tariffs, declining consumer and business spending, and uncertainties in hiring and capital investment. The agency also noted that corporate earnings expectations will decline, risks in the bond market are rising, stock valuations have reached unsustainable levels, and policymakers are unlikely to provide fiscal or monetary policy assistance
According to the latest investor report, Cantor Fitzgerald maintains a bearish stance on the U.S. stock market. The firm warns that the recent market rebound, primarily driven by investor positions, may have already passed. The company expects severe economic and corporate challenges in the next three to nine months due to multiple adverse factors. Cantor Fitzgerald stated in the report: "We remain bearish on the stock market and believe that the rebound we anticipated based on several factors has now passed."
Major concerns include inflationary pressures from tariffs, a decline in consumer and business spending following an earlier surge in demand, and increasing uncertainty that has begun to affect hiring and capital investment. Additionally, U.S. government layoffs are starting to show up in employment data, while ongoing supply chain disruptions continue to put pressure on economic output.
The global financial institution expects corporate earnings expectations to continue to decline, and risks in the bond market to rise, especially considering the anticipated impact of the upcoming Reconciliation Bill. The firm also warned that stock valuations have risen to unsustainable levels, particularly in the current economic context. Crucially, this investment company stated that unless the situation significantly worsens, policymakers are unlikely to provide fiscal or monetary policy assistance
